Understanding how Vineyard Management Companies work with Vineyards: A Crash Course

Vineyard management companies (VMCs) are essential partners for vineyard owners, handling day-to-day operations and freeing up owners to focus on other aspects of their wine business.

Here's what you need to know:

VMCs manage over half of Napa Valley's vineyards
They offer comprehensive services from pruning to harvest
Costs typically range from $6,500 to $9,500 per acre annually
VMCs can save money compared to in-house management

Key services provided by VMCs:

Complete vineyard care
Quality control and sustainability practices
Labor management and planning
Pest and disease control
Harvest coordination

Aspect	In-House Farming (Per Acre)	VMC (Per Acre)
Total Cost Range	$128,500 - $360,000	$6,500 - $35,000
Upfront Costs	$20,000 - $35,000	$0
Equipment	$100,000 - $300,000	$0
Annual Labor	$5,000 - $15,000	$6,500 - $30,000

When choosing a VMC, look for experience, full-service options, sustainable practices, and strong communication skills. A good partnership with a VMC can lead to better grape quality and more efficient vineyard operations.

Main Services

Vineyard management companies do a lot to help vineyard owners grow great grapes. Let's look at what they offer:

Complete Vineyard Care

These companies take care of everything in your vineyard. Here's what they do:

Pruning: Cut vines to control growth and make better fruit
Shoot thinning: Remove extra shoots to balance the vine
Canopy management: Adjust leaves for the right amount of sun
Pest and disease control: Keep bugs and diseases away
Irrigation management: Make sure vines get the right amount of water
Soil management: Keep the soil healthy
Harvest coordination: Plan and carry out grape picking

For example, J&M Agriculture Services, LLC does all of this and more. They prune, thin shoots, tie vines, remove suckers, position shoots, take off leaves and extra branches, and thin out grape clusters.

Standards and Quality

These companies work hard to keep grapes top-notch. They do this by:

Using farming methods that are good for the environment
Checking on the vines and soil often
Using tech like maps and aerial photos to make smart choices

Shannon Gledhill from Coastal Vineyard Care says:

"We stand out because we pay attention to details, work hard, care about the environment, and want to give our clients the best fruit and healthiest vineyards."

Staff and Work Planning

Managing workers is a big deal for vineyard success. Here's how these companies handle it:

They have skilled workers who know what they're doing
They can bring in more workers when it's busy (like Silverado Farming Company, which goes from 150 to 600 workers in peak times)
They plan out all the vineyard tasks carefully
They follow all the rules about hiring and treating workers fairly

Costs and Payment Types

Let's break down the financial side of working with vineyard management companies. It's key for vineyard owners to get this part right.

Payment Options

Vineyard management companies offer a few ways to pay:

1. Per-acre pricing

This is the most common. You'll typically pay $6,500 to $9,500 per acre each year. In high-end markets? That can jump to $30,000 per acre.

2. Per-ton pricing

Some companies charge based on your grape harvest. This can work well if your yields vary.

3. Deferred payments

Want to pay after the harvest? Some companies let you do that. It's handy for managing cash flow.

4. Installment plans

Need to spread out payments? Many companies offer installment options throughout the year.

Cost Comparison

Let's compare managing in-house vs. hiring a vineyard management company:

Cost Category	In-House Farming (Per Acre)	Vineyard Management Company (Per Acre)
Upfront Costs	$20,000 - $35,000	$0 (VMC covers it)
Equipment	$100,000 - $300,000	$0 (VMC covers it)
Annual Labor	$5,000 - $15,000	$6,500 - $30,000
Ongoing Maintenance	$1,000 - $2,000	Included in VMC fees
Expert Services	Varies (hired separately)	Included in VMC fees
Harvesting	$1,500 - $3,000 (seasonal)	Included in VMC fees
Unexpected Costs	$1,000 - $5,000	$0 - $5,000
Total Range	$128,500 - $360,000	$6,500 - $35,000

The numbers speak for themselves. Outsourcing can slash upfront costs and make your yearly expenses more predictable.

But remember, costs vary by location:

Washington growers spend about $1,000 per acre on labor.
Oregon? Labor costs are nearly four times higher due to more hand labor.

Even specific tasks differ. In Washington, cluster thinning averages $238 per acre. In Oregon, contracted manual harvesting hits $630 per acre.

Pete Richmond of Silverado Farming Company puts it bluntly:

"An enormous amount of money", was Richmond's first response when asked about red flags for new entrants into the wine-producing business.

Sounds scary, right? But here's the thing: outsourcing to a vineyard management company can actually SAVE you money in the long run. How? They bring expertise, efficient operations, and economies of scale to the table.

So, what should vineyard owners do?

Know your production costs and how they affect cash flow
Think about using U.S. GAAP-based inventory costing for better financial insights
Look at different payment structures from vineyard management companies
Factor in regional cost differences
Don't just focus on price - consider the value of professional management

Working Together

Vineyard owners and management companies need to team up for success. Here's how they make it work:

Who Does What

Owners and managers split tasks to keep things running smoothly:

Task	Vineyard Owner	Management Company
Setting overall goals	✓
Financial planning	✓	✓
Vineyard operations		✓
Quality control	✓	✓
Marketing and sales	✓
Regulatory compliance		✓
Long-term strategy	✓	✓

Owners handle the big picture stuff. Managers take care of the day-to-day grind.

Making Decisions

Good decisions keep vineyards thriving. Here's the process:

1. Regular check-ins

Owners and managers meet often to talk shop.

2. Data-driven choices

Managers provide detailed reports. No guesswork here.

3. Teamwork on tough calls

When problems pop up, everyone puts their heads together.

4. Roll with the punches

Plans are great, but flexibility is key. As Markus Keller, a big-shot viticulture professor, puts it:

"Building trust among your team members is important in creating an open line of communication."

That trust comes in handy when Mother Nature throws a curveball.

Who Handles What

Let's break down the nitty-gritty:

Task	Who's on it	Extra info
Pruning	Management Company	Winter work
Watering	Management Company	Based on weather and vines
Bug control	Management Company	Smart pest management
Harvest planning	Both	Owner sets goals, company makes it happen
Fixing stuff	Management Company	Keep those machines humming
Soil care	Management Company	Cover crops and all that jazz
Worker wrangling	Management Company	Hiring, training, scheduling
Quality checks	Both	Walking the rows, tasting the goods
Green practices	Both	Keeping things eco-friendly

Clear communication is a must. Agree on how you'll handle pests, schedule crews, and measure success right from the get-go.

Vineyard management is always evolving. One pro tip: Chat with your workers, contractors, and neighboring farmers. Their know-how can give you a leg up in running your vineyard.

Tools and Equipment

Today's vineyards use a mix of high-tech software and specialized gear. Let's look at what's making waves in vineyard management.

Management Software

Vineyard managers now use smart software to keep tabs on everything. Here are some top picks:

AgCode Vineyard Module: This mobile app does it all - payroll, chemical tracking, and crop monitoring. One manager saw a 30% productivity boost after using it.

VineInfo: A real-time, web-based service that covers pruning to wine production. No new hardware needed.

vintrace: Made for winemakers, it helps manage the busy harvest season, from work allocation to barrel tracking.

Here's a quick look at these options:

Software	Main Features	Best For
AgCode	Payroll, chemical tracking, mobile data	Big vineyards with varied operations
VineInfo	Real-time monitoring, works with existing tech	Tech-savvy managers
vintrace	Harvest planning, barrel management	Production-focused winemakers

Tool Options

Physical tools are still crucial. Here's some gear that's making a difference:

Tractors and Harvesters: New Holland Agriculture offers grape harvesters for different row widths, with engines from 128 to 182 horsepower.

Sprayers: Jacto Inc. has 13 airblast sprayer models, from 50 to 1,000 gallons. They work with just an 18-horsepower tractor.

Specialty Equipment: Gearmore, Inc. sells 24 unique tools like vine trimmers and leaf removers.

High-Tech Solutions: Some vineyards are using UV robots to fight mildew and high-tech hail shields.

Chris Kajani from Bouchaine Vineyards says:

"Not just using one recipe across an entire vineyard... allows us to grow better grapes and also stops us from wasting any resources."

Bouchaine uses IoT sensors to treat each vine block individually. It's precision farming at its best.

The bottom line? Good tools can make a big difference in your vineyard. Don't be afraid to try new things. As Vaughn Walton from OSU's Oregon Wine Research Institute puts it:

"It is in the culture of agriculture to try new things."

Picking a Management Company

Choosing the right vineyard management company can make or break your vineyard's success. Here's what you need to know:

What to Look For

When shopping for a vineyard management company, keep these factors in mind:

Experience: Look for companies that have been around the block. Renteria Vineyard Management, for example, has nearly 30 years under their belt.
Full-Service Options: Companies like Coastal Vineyard Care Associates offer everything from planting to management, even handling business services in-house.
Green Practices: Many top companies are big on eco-friendly methods. Coastal Vineyard Care Associates, for instance, specializes in sustainable, organic, and biodynamic farming.
Tech-Savvy: Modern vineyard management often involves smart farming. Companies like Abaco Group offer high-tech solutions for efficient production.
Legal Stuff: Make sure they're a licensed Farm Labor Contractor (FLC) at both the Federal and State level. It's a sign of professionalism and legal compliance.
Good Communicators: You want a company that speaks your language. As Grand Crew Vineyard Management puts it, "It's my job to adapt to whatever method works best for you."
Crisis Management: Ask how they handle emergencies, like a broken irrigation line.

Rating System

Use this checklist when sizing up potential management companies:

Criteria	What to Look For	Your Rating (1-5)
Experience	Years in the game and types of vineyards managed
Services	What they offer (planting, pest control, harvesting, etc.)
Green Practices	How eco-friendly are they?
Tech Use	Are they using modern farming tools?
Legal Compliance	Proper licensing and following regulations
Communication	How responsive and clear are they?
Emergency Plans	How do they handle unexpected issues?
Client Feedback	What do other vineyard owners say?
Money Matters	Do they offer accounting and financial reporting?
Flexibility	Can they tailor their services to your needs?

The goal? Find a partner that fits your vineyard's unique needs and long-term vision. As Shannon Gledhill from Coastal Vineyard Care Associates says:

"What sets us apart is our attention to detail, our strong work ethic, our commitment to the environment, and our dedication to providing the clients with the highest quality fruit and the healthiest vineyards."

Meet potential companies on-site. It's the best way to see if they really get your vineyard and if their plans match your financial and winemaking goals.

Finally, agree on measurable results for both vineyard health and finances. This keeps you and your chosen company on the same page, setting you up for a successful partnership.

Summary

Vineyard management companies (VMCs) are game-changers in the wine industry. They handle everything from soil testing to harvest, letting vineyard owners focus on branding and sales. Here's the lowdown:

VMCs are one-stop shops for vineyard care. They bring expert knowledge and smooth operations to the table, taking care of staffing and work coordination.

But how do the costs stack up? Let's break it down:

Aspect	DIY Farming (Per Acre)	Hiring a VMC (Per Acre)
Yearly Cost	$128,500 - $360,000	$6,500 - $35,000
Starting Costs	$20,000 - $35,000	$0 (VMC covers it)
Equipment	$100,000 - $300,000	$0 (VMC covers it)
Workers	$5,000 - $15,000	$6,500 - $30,000

At first glance, VMC prices might make you wince - $6,500 to $9,500 per acre each year. But in the long run? They often save you money compared to doing it yourself.

The wine world isn't all roses, though. Grape prices have been on a downward slide. Take Cabernet Sauvignon in California's district 11. In 1997, it fetched $793 per ton. By 2022? Down to $695.

A 2021 UC Davis study dropped this bombshell: vineyards need to pump out at least 11 tons per acre at $700 a ton just to break even.

So, what should you look for in a VMC? Experience is key. Go for full-service options and eco-friendly practices. And remember, clear communication and agreed-upon goals are make-or-break for a successful partnership.